Jane purchased an annuity contract that pays her $800 per month The annuity cost her $50,000 and it has an expected return of $100,000 How much of each monthly annuity payment is includible in Jane 's gross income ...

A taxpayer will generally owe tax on the full amount of ...

Jane purchased an annuity contract that pays her $800 per month. The annuity cost her $50,000 and

Question:

Jane purchased an contract that pays her $800 per month. The cost her $50,000 and it has an of $100,000. How much of each monthly payment is includible in Jane's gross income?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...